corruption, this paper examines whether formal sector productive (unproductive) entrepreneurial activity is associated with lower … corruption by asking whether corruption affects entrepreneurial outcomes primarily through its effects on the shadow economy. I … contend that if this is the case, then estimates of corruption should serve as a good instrument for shadow economy size in …

determinants such as: corruption, regulation and bureaucracy, quality of public and government services, detection probability …

corruption. It shows that an improvement in institutional quality reduces the shadow economy and affects the corruption market …. The exact relationship between corruption and institutional quality is, however, ambiguous and depends on the relative … effectiveness of the institutional quality in the shadow and corruption markets. The predictions of the model are empirically tested …

shadow economy. -- shadow economy ; tax morale ; governance quality ; government intervention ; corruption …

morale ; institutional quality ; government intervention ; corruption …

As recently suggested, the shadow economy and its determinants (taxation, regulations, corruption, etc.) are linked …